Latest news with #St.James'sPlace
Daily Mirror
a day ago
- Business
- Daily Mirror
Money decisions to make now for a better 2026 - from inflation to savings and spending
It may seem too early to be thinking about next year, but when it comes to your finances, the decisions you make today could set the tone for the rest of your life. From grasping the concept of inflation to mastering your savings strategy, financial share six essential steps for a more prosperous 2026. It might feel premature to consider next year, but in the realm of personal finance, today's choices could shape your financial future. For those aiming to replenish their savings, delve into investments, or simply understand the financial forecast for the coming year, the consensus among experts is clear: taking action now can have significant benefits. In other news, state pension warning for millions of Brits who are between two specific ages. Here are six proactive measures you can take to ensure a financially brighter 2026. READ MORE: 'I switched my perfume to a cheaper alternative - and I've never had so many compliments' Clarify your financial goals Managing money without clear objectives is like navigating without a map. Determining your financial intentions is a crucial step in 2025. "Write down your own financial priorities in life – whether it is being debt free, helping your children, or having enough money to retire – and allocate a specific amount of your disposable income to these priorities," advises Iain McLeod, head of private clients at St. James's Place. McLeod suggests seeking professional advice if you're uncertain: "Seek financial advice to ensure that these savings are working harder for you – from a taxation and investment perspective." "The worst move is to do nothing," he warns, "the second worst move is to follow a flow chart – everyone's circumstances are as unique as their fingerprint," he explains. Deciding whether to save, invest, or spend It can be tricky with inflation still above the Bank of England's target and interest rates at 4.25% and it might feel like a dilemma between hoarding cash and splurging on big-ticket items before prices climb further. However, trying to time the market or predict interest rate moves is not the key. "The best approach is to focus on what you can control," advises McLeod. He explains: "Once you have balanced how much you would like to spend and how much you can afford to save, you are in a stronger position to commit savings to longer-term investments. This provides the foundation of a longer-term plan, which can be resilient against shorter-term shocks in the markets." Or as James Ballinger, a financial planner at TrinityBridge, succinctly puts it: "2025 is no different from any other time [...] Generally, if you are younger in age or still haven't reached financial independence, you should be looking to maximise savings and investments – whilst still enjoying life!". Start with what you already have For those just starting out with investing, it's important not to be swayed by market fluctuations or the allure of quick profits. Instead, consider what financial arrangements you already have. "The best area to start is always with cash," suggests McLeod. "How much do you need readily available at the bank for emergencies such as house repairs, large expenditures such as holidays, or simply an amount that gives peace of mind?". Long-term objectives should guide your financial strategy. "Start with the end in mind – how much do you realistically need to save in order to meet your retirement goals?" he advises. He also emphasises that "diversification should be a core principle [...] it is generally the safest way to achieve longer-term investment goals". Ballinger concurs that saving mechanisms can be straightforward. "ISAs and pensions are both tax-efficient ways to save for the future," he notes, adding that "more basic than that, having a separate bank account that you earmark for saving, can help to avoid overspend." Rebuilding your savings without feeling skint Replenishing your savings doesn't have to entail giving up all life's pleasures if you've recently tapped into them. "A lot of planners will talk about 'paying yourself first'," Ballinger mentions, referring to the practice of automatically transferring money into savings as soon as you receive your pay. "This creates discipline and forces you to adapt to your remaining budget through the rest of the month." Budgeting tools can be beneficial. Ebony Cropper, a money-saving expert at Money Wellness, recommends using banking apps or online resources to monitor your spending habits. "People are often surprised to find they're spending hundreds a month on things they don't actually need, like forgotten subscriptions, daily coffees or impulse buys. Just cutting £5 a day could save over £1,800 a year," he says. Don't overlook the upcoming changes set for 2025 and beyond The financial landscape is ever-evolving, with tax thresholds and pension rules among the areas subject to change – and not always to your advantage. "The 2024 autumn Budget introduced a number of changes that could impact savers in the future," McLeod points out. He highlights that Capital Gains Tax has increased, and from April 2025, the Stamp Duty threshold in England and Northern Ireland will be reduced from £250,000 to £125,000. "First-time buyers will also be impacted, with their stamp duty threshold dropping significantly from £425,000 to £300,000." McLeod further warns that "unused pension funds and death benefits will be included in the value of a person's estate for Inheritance Tax from 6 April 2027." He advises those affected to consult a financial adviser without delay. Ballinger anticipates another government Budget this autumn and suggests, "we may see further changes to tax then". Take advantage of existing schemes and benefits However, it's important not to panic about future changes. There are still many government schemes and benefits that remain underutilised. Cropper reveals that "Over £23bn in benefits goes unclaimed every year," She explains that even higher earners might be eligible for support based on factors like childcare or housing costs. "Someone earning £30,000 with two kids and high childcare costs could be entitled to hundreds of pounds in support." She also encourages people to explore cashback schemes and to verify their tax code, cautioning that "errors can cost you hundreds". For individuals with limited resources, she advocates the Help to Save scheme as a smart choice: "Save £50 a month and you'll get £600 in bonus payments over two years – and £1,200 if you keep it going for four. That's a 50% return, completely risk-free." The financial habits you establish today – from more intelligent budgeting to savvy use of tax wrappers – will yield dividends not just in 2026, but for many years to come. As McLeod puts it: "The best time to plant a tree was 20 years ago. The second best time is now."
Business Insider
14-07-2025
- Business
- Business Insider
St. James's Place price target raised to 1,075 GBp at RBC Capital
RBC Capital analyst Ben Bathurst raised the firm's price target on St. James's Place (STJPF) to 1,075 GBp from 1,025 GBp and keeps a Sector Perform rating on the shares. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
The Herald Scotland
14-07-2025
- Business
- The Herald Scotland
UK saving vs investing in your future: the right balance for you
When we talk about saving and investing, we generally think of it as setting some money aside for the future. Go deeper into it, however, and it becomes clear we're talking about two quite distinct activities. For example, what do we mean by the future – next week, next month, next year or indefinitely? How much are we putting aside, where does it go and what do we want from it? The answers to these questions tell us whether we're talking about saving or investing. And it's important to understand the difference. Broadly speaking, saving is about putting money aside in the short term, whether it's for a 'rainy day' buffer fund or to pay for something specific, such as a holiday, car repair or work on the home. It usually entails putting money into cash accounts that can be accessed at short notice. Read more: Money HQ | What has changed about retirement today compared to 30 years ago? But while cash savings are a vital part of our resources – financial advisers recommend aiming for three to six months of 'emergency' money, if possible – they aren't usually suitable for longer-term goals, not least because cash tends to lose value to inflation over time. This is where investments come in. Investing is about setting money aside and leaving it untouched so that it can have the potential to grow into a bigger sum, benefiting from the 'snowballing' effect of compounding. It involves taking more risk with the money you put in, but the ups and downs of markets typically even out over the long term (five years or more). What are the reasons for saving? In its Financial Wellbeing Strategy, the Money and Pensions Service (MaPS) says: 'Saving and putting aside money for later life are similar behaviours, but people can approach these tasks with different mindsets.' Saving is very much in the here and now. It's dictated by our current circumstances, how much we can set aside, our immediate needs and objectives. 'It's about determining what the money is for,' says Tony Clark, Senior Propositions Manager at St. James's Place. 'Building an emergency fund in case the washing machine breaks down means needing instant access and accepting the money is in cash and not earning a great deal.' Circumstances have an impact as well. For example, rising inflation means many households have less disposable income available, if any. However, difficult times, such as inflationary periods and the COVID-19 pandemic, also remind us of our financial vulnerability and the importance of having a safety net. Investing for the long term So why do people invest? Because it's also important to focus on 'decades not days' – investing for our future self rather than our present self. 'Investing also requires purpose, but the goal isn't always clearly defined,' Tony observes. 'Retirement is a good example – we don't know the final figure we'll need for the future, but we know it'll happen one day.' Sometimes there will be a particular goal in mind, such as saving for a child so they have financial resources on reaching adulthood. While putting money into a Cash ISA for 15 to 20 years might prevent you from spending it, its value will be eroded by inflation. Read more: Money HQ | Retirement saving hacks for younger people Stock-market-based investments tend to produce much more growth over the long term due to the risk-reward relationship. This is the principle that by taking more risk with our money, we have the potential to receive more reward. 'Shorter term usually means not taking a risk and so saving into something more cautious or guaranteed, such as cash,' explains Tony. 'For longer-term objectives, we'll have greater risk tolerance by comparison as we have the time to recover from any volatility.' There are several ways of ensuring you don't take more risk than you're comfortable with, while you can also manage risk by making sure your investments are well diversified (spread across different assets). We can guide you through all of this and help keep your investments on track to meet your long-term objectives. Best of both worlds In a perfect world, most of us would be both saving for the shorter term and investing for the medium term (six months to five years) and long term. Not only does this make sense financially, but it's good for our wellbeing, too. According to MaPS, financial wellbeing is about feeling secure, confident and empowered, which includes knowing you can cover your short-term financial obligations while also being on track for a healthy financial future. In other words, a combination of saving and investing can be hugely beneficial, says Tony. 'This is where speaking to an adviser comes in, as they'll help you to understand your short, medium and longer-term goals, then consider the right balance for you between shorter-term savings needs and longer-term investment objectives.' The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested. Ben Stark is a chartered financial planner with over a decade of experience advising businesses and families. He is partnered with St. James's Place Wealth Management.
Daily Record
14-07-2025
- Business
- Daily Record
State Pension payments could be frozen due to soaring costs of annual uprating under Triple Lock
Financial expert Claire Trott suggests further increases to the age of retirement may help control soaring State Pension costs. Pension Credit – Could you or someone you know be eligible? Under the Triple Lock, the New and Basic State Pensions increase each year in-line with whichever is the highest between average annual earnings growth from May to July, Consumer Price Index (CPI) inflation in the year to September or 2.5 per cent. Over the 2025/26 financial year, the State Pension will cost the UK Government an estimated £145.6 billion. Last month, Pensions Minister Torsten Bell quashed growing speculation on social media that the State Pension would become means-tested under the Labour Government. However, Claire Trott, Head of Advice at St. James's Place, warns that the long-term sustainability of the State Pension Triple Lock is a topic that won't go away, despite political parties' reluctance to address it. She suggests one way around the ever-increasing costs of the Triple Lock could be to freeze the State Pension and increase access to Pension Credit, the most under-claimed means-tested benefit delivered by the Department for Work and Pensions (DWP). Another option could be to increase the State Pension age, which she said is the 'most viable and publicly palatable option'. The State Pension age is set to start rising from 66 to 67 next year, with the increase due to be completed for all men and women across the UK by 2028. The planned change to the official age of retirement has been in legislation since 2014 with a further State Pension age rise from 67 to 68 set to be implemented between 2044 and 2046. People born on April 6, 1960 will reach State Pension age of 66 on May 6, 2026 while those born on March 5, 1961 will reach State Pension age of 67 on February 5, 2028. You can check your own State Pension age online here. Ms Trott explained: 'The long-term affordability of the Triple Lock has been questioned for some time and understandably so. With people living longer and the Triple Lock delivering higher increases more frequently than originally anticipated, the cost has exceeded expectations and is only set to rise further. 'Yet despite the fiscal pressure, it remains a politically sensitive promise. With many pensioners still living in poverty, and also being a reliable voting demographic, few politicians are willing to risk tampering with it. 'If reform were to be considered, any proposal would need to ensure adequate support for those on the lowest incomes. Means-testing is often raised as a solution, but in practice it's unlikely to be pursued, given the cost and complexity of implementation outweighs the savings.' The financial expert continued: 'There are other options such as freezing the State Pension and increasing access to Pension Credit which might be a more pragmatic route - it's already in place and better targeted to those who need help most. 'Raising the State Pension age has been controversial in the past, but it's arguably the most viable and publicly palatable option in the longer term, as people continue to live and work for longer.' State Pension Triple Lock Nearly 13 million State Pensioners across Great Britain, including over one million living in Scotland, should start to keep an eye on the Consumer Price Index (CPI) inflation rate as it forms part of the Triple Lock measure which determines the annual uprating for the contributory benefit. The latest figures from the Office for National Statistics (ONS) show UK inflation decreased to 3.4 per cent in May, down from 3.5 per cent in April. Annual growth in employees' average wages for regular earnings (excluding bonuses) was 5.6 per cent and total earnings (including bonuses) was 5.5 per cent. The New and Basic State Pension increased by 4.7 per cent in April, which means someone on the full New State Pension currently receives £230.25 per week, or £921 every four-week pay period. Those on the full Basic State Pension receive £176.45 each week, or £705.80 every four-week pay period. State Pension uprating predictions for 2026/27 The Triple Lock is currently on track to be determined by the earnings growth element which is currently at 5.5 per cent. However, this figure may go up or down and isn't the final metric that will determine the level of uprating. The next CPI figure will be published by the ONS on July 17. That being said, a 5.5 per cent increase on the current State Pension would see people receive the following amounts. Full New State Pension Weekly: £242.90 Four-weekly pay period: £971.60 Annual amount: £12,630.80 Full Basic State Pension Weekly: £186.25 Four-weekly pay period: £744.60 Annual amount: £9,679.80 The annual uprating won't be confirmed until the Autumn Budget, but pensioners - and those due to retire next year - can start to plan their finances by following the Triple Lock measurements. The September CPI figure will be published in mid-October, but the wages growth figure is usually published in August.
The Herald Scotland
07-07-2025
- Business
- The Herald Scotland
Retirement saving hacks for young people in Scotland and UK
Many young people want to save for the long term but are thwarted by their own psychology. While they may put off any thought of retirement planning due to more immediate financial concerns, from paying off student loans to saving for a house deposit, they may also find it difficult to think about the distant future. The challenge is that people struggle to imagine themselves as old and lack empathy for their future selves. This makes it hard to commit to long-term savings and pensions – even for those fully aware of the benefits. The result is that many leave themselves short of money in later years, significantly affecting their financial wellbeing. You can hack this problem using a technique known as self-visualisation. What is self-visualisation? Future self-visualisation is a powerful psychological tool that can change this mindset and boost your financial confidence. Elite sportspeople use it for motivation – for example, picturing themselves winning at the Olympics, hearing the crowd's roar and feeling the triumph of achievement as they receive a gold medal. As a long-term saver, you can use the same technique to picture yourself at an older age and imagine what it feels like to be free from any unwanted financial burdens. Why is visualisation so powerful? Research by Hal Hershfield, a professor at UCLA, shows people tend to treat their future selves as a different person. His studies have sought to explore the idea that if people get to know and show more regard for their future selves, they might change their savings preferences to suit. He ran an experiment in which young people had their photos digitally aged. Those who looked at these said they wanted to save an average of 6.2% of their salary for retirement, versus 4.4% for people looking at a photo of their current self. In other words, those who had a clear visualisation of themselves in the future were more likely to favour long-term rewards. Once you have an understanding of your future self, visualisation creates a positive mindset. It helps to think about all the things you might do once you have achieved financial security in the future. Knowing who you want to be motivates you to plan more effectively, set achievable goals and become that person. How to use visualisation to get the life you want The scenarios you visualise are most effective when they contain as much vibrancy, detail and emotion as possible. Think about where you would like to live if money was no object – maybe you would have multiple homes. Visualise what hobbies or interests you would pursue if you had more free time. Allow yourself to sense what life could be like once you achieve your financial goals – conjure the images, colours, details and emotions in your mind. Tony Clark, Senior Propositions Manager at St. James's Place, says it doesn't matter if you're not sure exactly who you want to be yet. Just visualising potential scenarios will help you create tangible targets. Read more Money HQ: 'Nobody knows exactly what the future holds, but you can think about what your life might look like and what you aspire to,' he says. 'For example, do you want to travel the world, or own a nice house? 'Then think, 'If I want these versions of my future, how will I afford them?' Consider how you can give yourself options, so you're not stuck when the time comes.' How do you set long-term goals? Self-visualisation should motivate you to start making smart, practical steps towards achieving your aspirations. You can do many small things now that will make a big difference long-term – putting money aside for emergencies and creating a savings bucket for medium-term goals will help you get into the savings habit. Talking to a financial adviser can help you decide where to start. We can explain how savings and investment vehicles work – such as Stocks & Shares ISAs and pensions – and the tax advantages available. Additionally, we can talk to you about pensions. With an employee scheme, the more you put in, the more many employers will match. And if you're self-employed or a business owner, it's vital to start a private pension. The importance of saving into a pension cannot be overestimated: young people opting out of a workplace scheme or skipping contributions have a lot more to lose than older people who do so, due to how your money will grow over time. A critical concept in planning for the long term is compound returns, which makes your investment growth accelerate each year. Over 20 or 30 years, this growth accelerates ever faster towards the end – and it's exciting to picture. But you need to start early to take maximum advantage. The value of an investment will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested. The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief is generally dependent on individual circumstances. Ben Stark is a chartered financial planner with over a decade of experience advising businesses and families. He is partnered with St. James's Place Wealth Management.
